Eminence Plans to Vote Against Sabra's Care Capital Deal
- Ricky Sandler’s hedge fund says it owns 3.9% stake in Sabra
- Investor argues acquisition makes little strategic sense
Founder and chief executive officer of Eminence Capital LP, Ricky Sandler, speaks at the Skybridge Alternatives (SALT) conference in Las Vegas, Nevada, U.S., May 18, 2017.
Photographer: David Paul Morris/BloombergA second investor in Sabra Health Care REIT Inc. has come out against its proposed takeover of Care Capital Properties Inc., arguing the transaction makes little strategic sense and the purchase price is too high.
Eminence Capital, the $6 billion hedge fund run by Ricky Sandler, owns 3.9 percent of Sabra’s outstanding shares and plans to vote against the deal at an Aug. 15 meeting, according to a letter to the property trust’s board. The New York-based investor said the deal would increase Sabra’s exposure to skilled-nursing facilities, a business where profits are under pressure due to a shift toward different Medicare programs.